We construct a general equilibrium model of an open economy and develop a computational technique for deriving a market-clearing solution to the model. The model allows for disaggregated commodities, taxes, and tariffs. It includes a government that is an active participant in the economy as a...

We construct a perfect foresight intertemporal general equilibrium model designed to analyze the impact of reductions in piblic spending. The model incorporates public infrastructure that enters private productions and a reserve-based government exchange rate policy. The model is estimated for...

A key task of government policy makers is to determine suitable targets for the macroeconomic variables under their control. In this paper we demonstrate how, in the case of China, the use of official price indices can, with standard estimation procedures, cause these targets to be seriously...